How to plan for retirement in your 50s with more confidence

How to plan for retirement in your 50s

When you’re in your 50s, retirement starts to feel more real. It might be a few years away or still a bit further off, but it’s no longer a distant concept and that can be a powerful motivator to take action. 

Whether you’ve been saving since your 20s or have only started thinking about you pension in the last decade, this could be an important time to get a clearer view of your retirement options and feel more in control of what’s ahead. 

 Why your 50s matter for retirement planning 

You might be thinking about winding down work, making lifestyle changes, or deciding when and how you’ll start accessing your pension. Many pensions become available from age 55, but how and when you take them can affect your income, flexibility and tax position. 

According to research from Standard Life, around 40% of 50–64-year-olds with defined contribution pensions are unsure how they will access their savings, and 31% don’t know how much they’ll receive from their State Pension. 

Your 50s can be a good time to review, adjust and start shaping the retirement lifestyle you want. 

 Get a clearer view of your pension income 

If you’ve had multiple jobs, chances are you’ve got several pensions. This is a good time to gather your statements, check your State Pension forecast, and build a picture of your total retirement income. Campaigns such as The National Pension Tracing Day have top tracing tips and checklist to help you track down and consolidate any lost pension pots. 

You can use free tools like the MoneyHelper pension calculator to model different income scenarios and understand what your savings might give you and whether there’s a gap you’d like to close. 

Consider what you’ll need (and want) in retirement 

Thinking about your lifestyle goals can help you work out how much income you might need. That could include essentials like housing and bills, but also the freedom to travel, help family or simply enjoy more time for yourself. 

Everyone’s goals are different but knowing what matters the most to you can help you manage your savings now. 

 Learn more about how to access your pension 

There are different ways to take your pension.From drawdown to annuity, to taking lump sums, and each option has pros, cons and tax considerations. 

You don’t need to decide everything now, but starting to explore these options in your 50s can give you more flexibility and confidence later. Speaking to a regulated financial adviser can help you understand which route may be right for you. 

 Ready to take the next step? 

Planning for retirement in your 50s is about making your plans work for the life you want. Whether you’re approaching retirement, or just starting to look more seriously at your options, now can be a great time to take stock and make informed decisions. 

Our free guide, ‘5 top tips for retirement planning in your 50s’, is designed to help you do just that. It’s full of practical steps you can take now to build confidence as you move closer to retirement.  

If you’d like personal support, a Foster Denovo adviser can help you understand your options and help you feel more prepared for what’s ahead.

Get in touch
If you would like to discuss how to plan for retirement in your 50s, or if you wish to schedule an initial consultation, please contact us.advise-me@fosterdenovo.com

This article is for general information only and does not constitute advice. The information is aimed at retail clients only.

The value of your investment can go down as well as up and you may not get back the full amount invested. Pension income could also be affected by interest rates at the time benefits are taken. The tax treatment of pensions in general and the tax implications of pension withdrawals will be based on individual circumstances, tax legislation and regulation, which are subject to change in the future. Investments do not include the same security of capital which is afforded with a deposit account. Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances. A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Accessing pension benefits early may impact on levels of retirement income and your entitlement to means tested benefits.  You should seek advice to understand your options at retirement. Pension savings are at risk of being eroded by inflation. The Financial Conduct Authority does not regulate taxation and trust advice.